is it possible to find it?....currently replaying baldurs gate going through things that i didn't before....well at least until tomorrow when never winters released in the uk.

Yes, you can find it. It has been soooooo long since I played that I can't even remember the town you met him in! (is it Bregost?) Anyway, if memory serves me head out of town north by northeast. You'll come across an abandoned caravan. This should appease Kagain. I really liked this NPC.

I love Kagain too. Hmm, i recall that if you never went to look for the caravan, he will leave you, but if you take a look in some area, then he gives up. I recall a caravan but am not sure if that was the one he was looking for, since he didnt initiate any dialog near that particular one.

Yup, you met Kagain in Beregost. IIRC the caravan is located at the Crossroads, two areas east of Candlekeep, where if you went north you would go to FAI and south to Beregost.